The fact you can frequent a JD Wetherspoon (JDW) bar morning, noon and night since it entered the breakfast space is having the desired effect on the top line.
IC TIP:
Sell
at
625p
But while there was like-for-like sales growth in the second quarter, this came against fairly undemanding comparables in the first quarter and, as we feared when we recommended selling the shares last year, increased sales are taking a heavy toll on margin.
Management stated operating margins for the half year would be roughly 6.3 per cent, which is 1.1 per cent below the same period last year. The reason for this is increased starting rates for hourly paid staff in October 2014 and August 2015, which totalled 13 per cent.
